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TasWater Suggests Smaller Pipes to Offset Water Bill Hikes, Businesses Balk at Cost

Businesses facing increases of up to 500% say replacing pipes could cost $100,000

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By LineZotpaper
Published
Read Time3 min
Sources2 outlets
TasWater has drawn sharp criticism from Tasmanian businesses after suggesting that customers affected by water bill increases of up to 500 per cent could reduce their meter connections to 20 millimetres to lower costs. The proposal emerged during a parliamentary inquiry on Thursday, as the utility defends average annual price rises of 5.7 per cent over four years, which took effect in July.

Tasmanian businesses have slammed a recommendation by the state's water utility encouraging customers affected by bill increases to reduce the size of their pipes.

As of July, water bills for Tasmanian households and small businesses will rise by an average of 5.7 per cent each year for the next four years. Businesses and sports clubs said they have been hard hit by the changes, with some citing an increase of as much as 500 per cent to their fixed water bill.

In a parliamentary inquiry into the financial and operational performance of TasWater on Thursday, representatives suggested one option to help reduce water bills for those affected would be to reduce meter connections to 20 millimetres in size.

One local business said replacing pipes could cost as much as $100,000, with no guarantee that they could be reduced to 20 millimetres. TasWater has previously said that while the upfront cost would be several thousand dollars, the returns would be greater.

Co-director of Rocherlea steel fabricating business HP Engineering Stuart Boyd said the business's monthly water bill in June was $625, equivalent to $7,500 per year. After the changes, this increased by more than 500 per cent to $3,800 a month, or more than $45,000 a year.

Mr Boyd said reducing the company's inward water pipes, which are 150 millimetres in size, could cost as much as $100,000. "We'd have to get engineers and more consultants to design and do a study," he said. "There'd be business disruptions to dig up from the road in and change pipe sizes. You're talking labour, materials, the cost of your building surveyor, there'd be design work involved."

TasWater said it recognised the scale of the increase for some non-residential customers and was actively consulting with the economic regulator on other ways it could minimise impacts.

TasWater Customer and Community General Manager Callan Paske explained the increased pricing, saying that "a larger water meter connection lets a property draw more water at any time than a standard home". "Our pipes, pumps, treatment plants and storages have to be built and maintained to meet that potential demand, whether it's used on a given day or not. Fixed charges recover the cost of holding that capacity available."

Last year, TasWater applied to the state's economic regulator for an average price increase. In the 2023–24 financial year, TasWater lost 24.5 per cent of its treated water.

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Analysis

Why This Matters

  • Small businesses and sports clubs in Tasmania face steep, sudden water bill increases that threaten their viability.
  • The utility's suggestion to downsize pipes highlights a broader tension between infrastructure funding and customer affordability.
  • The outcome of this dispute could set a precedent for how regulated utilities balance cost recovery with customer impacts in Australia.

Background

TasWater is Tasmania's primary water and sewerage utility, responsible for aging infrastructure across the state. The price rises, approved by the economic regulator, are intended to fund upgrades to pipes, treatment plants and storages. The utility lost nearly a quarter of its treated water in the 2023–24 financial year, underscoring the scale of the leakage problem. The parliamentary inquiry is examining TasWater's financial and operational performance.

Key Perspectives

TasWater: Maintains that larger meter connections impose higher fixed costs because infrastructure must be sized for potential peak demand, regardless of actual usage. It argues reducing meter size is a viable long-term option and that upfront costs, though significant, are recouped through lower bills. Affected Businesses and Sports Clubs: Say the 500% increases are crippling and that the pipe-reduction proposal is impractical and expensive. HP Engineering estimates $100,000 in engineering, labour and disruption costs, with no guarantee of success. Critics/Skeptics: Question why a utility with high water loss is passing infrastructure costs to customers so aggressively, and whether more efficient water management or gradual pricing reform would be fairer.

What to Watch

  • The economic regulator's response to TasWater's application and any alternative pricing proposals.
  • Further parliamentary inquiry hearings, which may pressure TasWater to revise its approach.
  • The financial impact on small businesses in Tasmania, and whether any close or relocate as a result.

Sources

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Articles published under the Zotpaper byline are synthesized from multiple source publications by our AI editor and reviewed by our editorial process. Each story combines reporting from credible outlets to give readers a balanced, comprehensive view.

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